Should we buy Northside Landscaping?
Yes, at up to 3.5 times earnings, financed mostly with debt.
Northside's sales grew 22% a year since 20231Your filesNorthside's financial statements, 2023 to 2025“Revenue: $812,000 (2023), $991,000 (2024), $1,208,000 (2025).”, and its two largest contracts renew through 2028. Comparable firms in the region sold for 3 to 4 times earnings2WebRegional deal data, landscaping services, 2025“Recent sales of comparable firms closed at 3.0 to 4.0 times earnings.”.
Your books can carry it: at 7% interest, the loan would use 31% of your monthly profit, and your cash never drops below three months of costs3Your booksYour books, Jan to Oct 2026“Profit averaged $9,800 a month; cash at Oct 31 was $38,400.”.
| Price at 3.5x earnings | $1.26M |
| Loan payment a month | $14,900 |
| Payback | 4.1 years |
- Northside's financial statements, 2023 to 2025
- Regional deal data, landscaping services, 2025
- Your books, Jan to Oct 2026